Selected comparative financial statements of Haroun Company follow. HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2021–2015 ($ thousands) 2021 2020 2019 2018 2017 2016 2015 Sales $ 2,766 $ 2,423 $ 2,204 $ 2,020 $ 1,885 $ 1,753 $ 1,437 Cost of goods sold 1,990 1,619 1,393 1,219 1,133 1,059 844 Gross profit 776 804 811 801 752 694 593 Operating expenses 592 463 425 314 272 268 223 Net income $ 184 $ 341 $ 386 $ 487 $ 480 $ 426 $ 370 HAROUN COMPANY Comparative Year-End Balance Sheets December 31, 2021–2015 ($ thousands) 2021 2020 2019 2018 2017 2016 2015 Assets Cash $ 93 $ 123 $ 127 $ 130 $ 135 $ 133 $ 138 Accounts receivable, net 667 700 634 486 428 405 286 Merchandise inventory 2,411 1,755 1,534 1,292 1,161 986 715 Other current assets 62 56 34 61 52 53 28 Long-term investments 0 0 0 190 190 190 190 Plant assets, net 2,950 2,939 2,571 1,451 1,499 1,333 1,143 Total assets $ 6,183 $ 5,573 $ 4,900 $ 3,610 $ 3,465 $ 3,100 $ 2,500 Liabilities and Equity Current liabilities 1,557 $ 1,309 $ 859 $ 714 $ 620 $ 586 $ 378 Long-term liabilities 1,663 1,448 1,409 654 668 724 543 Common stock 1,125 1,125 1,125 1,000 1,000 875 875 Other paid-in capital 281 281 281 250 250 219 219 Retained earnings 1,557 1,410 1,226 992 927 696 485 Total liabilities and equity $ 6,183 $ 5,573 $ 4,900 $ 3,610 $ 3,465 $ 3,100 $ 2,500 Required: Complete the below table to calculate the trend percents for all components of both statements using 2015 as the base year. Refer to the results from part 1. (a) Did sales grow steadily over this period? (b) Did net income as a percent of sales grow over the past four years? (c) Did inventory increase over this period? Prev Question 1 of 2 Total 1 of 2 Visit question mapNext McGraw Hill

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Selected comparative financial statements of Haroun Company follow. HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2021–2015 ($ thousands) 2021 2020 2019 2018 2017 2016 2015 Sales $ 2,766 $ 2,423 $ 2,204 $ 2,020 $ 1,885 $ 1,753 $ 1,437 Cost of goods sold 1,990 1,619 1,393 1,219 1,133 1,059 844 Gross profit 776 804 811 801 752 694 593 Operating expenses 592 463 425 314 272 268 223 Net income $ 184 $ 341 $ 386 $ 487 $ 480 $ 426 $ 370 HAROUN COMPANY Comparative Year-End Balance Sheets December 31, 2021–2015 ($ thousands) 2021 2020 2019 2018 2017 2016 2015 Assets Cash $ 93 $ 123 $ 127 $ 130 $ 135 $ 133 $ 138 Accounts receivable, net 667 700 634 486 428 405 286 Merchandise inventory 2,411 1,755 1,534 1,292 1,161 986 715 Other current assets 62 56 34 61 52 53 28 Long-term investments 0 0 0 190 190 190 190 Plant assets, net 2,950 2,939 2,571 1,451 1,499 1,333 1,143 Total assets $ 6,183 $ 5,573 $ 4,900 $ 3,610 $ 3,465 $ 3,100 $ 2,500 Liabilities and Equity Current liabilities 1,557 $ 1,309 $ 859 $ 714 $ 620 $ 586 $ 378 Long-term liabilities 1,663 1,448 1,409 654 668 724 543 Common stock 1,125 1,125 1,125 1,000 1,000 875 875 Other paid-in capital 281 281 281 250 250 219 219 Retained earnings 1,557 1,410 1,226 992 927 696 485 Total liabilities and equity $ 6,183 $ 5,573 $ 4,900 $ 3,610 $ 3,465 $ 3,100 $ 2,500 Required: Complete the below table to calculate the trend percents for all components of both statements using 2015 as the base year. Refer to the results from part 1. (a) Did sales grow steadily over this period? (b) Did net income as a percent of sales grow over the past four years? (c) Did inventory increase over this period? Prev Question 1 of 2 Total 1 of 2 Visit question mapNext McGraw Hill

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